The "law" of diminishing marginal utility implies that the
A) marginal utility of a good diminishes over time.
B) first unit of a good consumed will contribute most to the consumer's satisfaction.
C) total utility is constant as more units are consumed.
D) last unit of a good consumed will contribute most to the consumer's satisfaction.
E) total utility is negative.

Question

Quizplus · Accepted Answer

The "law" of diminishing marginal utility states that as a consumer consumes additional units of a good, the additional satisfaction, or marginal utility, from each unit consumed will eventually decrease. Therefore, the first unit consumed will contribute the most to the consumer's overall satisfaction, and subsequent units will contribute less and less.

The "Law" of Diminishing Marginal Utility Implies That the